The number of foreclosed homes for sale in Crestview, FL, varies from week to week, but what doesn’t change is the amount of people hoping to score the real estate deal of their lives. Foreclosed properties can be goldmines, but they can also be money pits. Before you invest in this type of real estate, it’s important you know what to expect.
Not Every Foreclosed Property Is Worth the Money
For a foreclosed property to have value it must be equitable. What does this mean? Well, it depends on the type of property you’re looking at. Some foreclosed properties are merely discounted because the bank is willing to take a loss and move on. These properties may not have major flaws. They may just need a fresh coat of paint and new flooring to regain their value. If a property like this is in a good area, it may be a good investment.
Now, let’s look at properties that have a few more problems and consider their value and whether there will be enough equity to make the property worth purchasing. Most foreclosed properties in the area are going to be in a state of disrepair. Either the previous homeowners didn’t take care of the property while they were living in the home or once they realized they were going to lose the property they decided to take their revenge out on the walls, floors, appliances, etc. These properties can still be valuable, but you’ll want to consider how much money you’ll need to put into the property to get it in shape to live in or sell.
A lot of people purchase foreclosed properties because they want to turn around and sell it for a profit. If this is your goal, then it is vital that you consider the costs to renovate and restore the home versus what it will reasonably go for in today’s real estate market. Some homes are better investments than others.
It Can Take a Long Time to Purchase a Foreclosed Home
A traditional real estate transaction can take anywhere from 30–90 days from start to finish. With a foreclosed property, you can almost expect the process to take twice as long. In fact, it could take as long as a month to hear whether or not your offer has been accepted.
When you buy a foreclosed property, you’re purchasing the home from the bank who owns the mortgage. You are not dealing with the original homeowner. Banks and lenders want to make sure that they’re getting the best deal possible. There may also be multiple offers on the home and it may take some time to go through all the offers.
Ask a Realtor for Help
If time is of the essence, you may be better off buying a regular property. There are plenty of properties in the area that you can get a great deal on if you work with a Realtor and take the time to research what is available.
You should never attempt to purchase a foreclosed property without professional assistance. Not only should you have a Realtor on your side who is experienced with these kinds of transactions, but you need to make sure the lender you choose to work with will fund foreclosed property transactions. Not all lenders will approve a loan that needs to go through the foreclosure process.
With so many foreclosed homes for sale in Crestview, FL, take your time to find the property that is the best investment for you. While nearly all foreclosed properties are sold as is, still make sure you get an inspection so you know exactly what you’re getting into. This is the best way to make sure you’re prepared for all scenarios.